From the Readers
Drawbacks of trade unions
(China Daily)
Updated: 2010-08-09 07:55
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Comment on "More workers urged to join unions" (China Daily, Aug 3)
I was appalled to read the article. In my opinion, trade unions will make China worse rather than better off. Because unions demand higher wages for workers they drive up the production cost. They make companies operate less efficiently, too, not only because they try to impose rules on the their operations, but also many of the companies' decisions require union approval, limiting their ability to respond to changing marketing conditions.
As a result of these added costs and lowered efficiency, sales will fall and fewer workers will be hired in China. In other words, if this policy is implemented, it will destroy the job market and harm workers.
If you want a perfect example of how unions can wreck countries, read about England in the 1970s (before Margaret Thatcher). The country was paralyzed by strikes. Chinese economists should alert the government against the risks trade unions pose.
Joseph Stevano, via e-mail??
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(China Daily 08/09/2010 page9)